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Memphis Tennessee Bankruptcy Blog

Master your credit universe after bankruptcy

Many people bristle at the idea of applying for bankruptcy. Even if you end up with your house and your important assets intact, you may feel as if you will wear a scarlet letter “B” for the foreseeable future. While it is true a Tennessee Chapter 7 bankruptcy will stay on your credit report for ten years, it does not have to be the anchor that weighs you down. In fact, you can start rebuilding your credit score right away following bankruptcy.

A Chapter 7 bankruptcy may wipe out your debts, but it does not erase poor financial records that exist on your credit report. The only way you can offset your bad financial record is to build a good one. However, the stigma of bankruptcy may seem to be an insurmountable barrier. Why would banks give you a credit card if you have bankruptcy on your record? Fortunately, there are several ways someone who has passed through bankruptcy can still successfully receive a credit card.

How personal bankruptcy allows you to keep the lights on

One of the consequences of not being able to pay your Tennessee energy bills is that one day you may come home, flick on a light switch, and find your lights no longer work. Not only that, but your television and computers will not come on, your air conditioner will not cool your home and your refrigerator no longer cools your food. As it has turned out, your utility company has decided to switch off your power, leaving you in the dark and adding misery to your financial problems.

The Huffington Post points out that utility costs actually are one of the top ten reasons why people go bankrupt. Even if you have not incurred a lot of credit card debt, student loan debt or other expenses, the problem of rising costs of air conditioning, heat and electricity can propel some homeowners into financial debt. The need to maintain a home’s utilities may make it seem impossible to get a handle on your finances, and if your utility company is not appeased, they will shut off electricity to your home.

Life after bankruptcy: The top 5 things you should do

Congratulations! You completed your Tennessee bankruptcy and have your discharge papers. Now that your financial feet are on the ground, you are ready to start over financially. Based on what you learned the past few months, this time you will find it easier to establish, build and maintain your credit in a responsible way.

Before you do that, however, there are four other things you should do, or start doing, immediately.

Ways to determine if you can file Chapter 13 bankruptcy

Anyone new to Tennessee bankruptcy proceedings is likely to be curious about whether they can qualify for Chapter 13 bankruptcy. While it is true that Chapter 13 offers the possibility of preserving assets or an entire business in the face of creditor demands, this type of bankruptcy requires specific criteria for someone to be able to file for it. A person can be disqualified for filing Chapter 13 for a number of reasons.

As Findlaw explains, you cannot file for Chapter 13 if you are a business. You may file for Chapter 13 as an individual or in a joint filing with a spouse. However, business organizations like a limited liability company (LLC) or a corporation are not eligible. Exceptions are only made if the business income and your personal income are the same. If, for example, you work as a sole propitiator, you can file for Chapter 13. You may also file if you are part of a business partnership. You just file for the debts that you possess personal liability for.

Can Chapter 7 bankruptcy discharge all my debts?

Filing for Chapter 7 bankruptcy is an aggressive but effective means of dealing with unmanageable debt. While it is not right for everyone, it can make a significant difference in the lives of people who file for this type of protection.

Chapter 7 is a form of bankruptcy that discharges all eligible debts. In other words, filers will no longer be responsible for the affected debts. However, it is crucial to understand that some sources of debt are not eligible for discharge and will remain, even if you file for Chapter 7 bankruptcy.

3 reasons to file for bankruptcy

When you are struggling with increasing debt, you are probably also struggling to decide what step to take to get out of this situation. You know bankruptcy is an option, but there is so much stigma attached to it. You may be afraid it will ruin your credit permanently or cause you to lose important assets.

However, bankruptcy is likely the best choice to make. Other debt relief options may be shady, unrealistic or unhelpful. Filing for bankruptcy, on the other hand, comes with immediate and long-term benefits, such as these three.

*We are a debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.